en.Wedoany.com Reported - Australian-listed company Azzuro Resources (ASX:AZ9) is accelerating its copper exploration strategy in Mongolia, with recent drilling extending the large sulfide zone at the Red Hill project to a strike length of over 155 meters, noting proximity to the mineral source channel. Upcoming assay results will provide key information on grade, copper content, and the strength of the deposit system.
Azzuro Resources, formerly known as Asian Battery Metals, recently obtained shareholder approval to change its name, reflecting its strategic shift toward copper. Managing Director Gan-Ochir Zunduisuren stated that the company's core focus has turned to copper, aiming to form clusters of deposits in underexplored areas that can share the same logistics and infrastructure, with consideration for building a central processing plant in the future. The Red Hill project was acquired in a recent transaction for US$890,000, along with a long-term mining license valid until 2045. Due diligence drilling has already intersected a 14.5-meter section grading 2.23% copper and 0.73 g/t gold from a depth of 132.5 meters.
Mongolia, one of the world's largest commodity exporters, is benefiting from favorable timing amid rising copper prices. Copper prices on the London Metal Exchange have risen approximately 18% year-to-date, with UBS forecasting copper prices to reach US$14,000 per ton by September 2026 and raising its target to US$15,500 per ton by June 2027. Approximately 90% of Mongolia's exports are related to mining, and Rio Tinto's (ASX:RIO) Oyu Tolgoi mine, once fully operational, is expected to account for 33% of Mongolia's GDP and could become the world's fourth-largest copper mine by 2030.
In addition to Red Hill, Azzuro Resources also holds the Oval (Yambat) and Copper Ridge projects. The exploration target range for the near-surface drilling portion of Oval is 1.3 million to 6.5 million tons, corresponding to a zone 10-15 meters thick, 450 meters long, and 100 meters high, with average grades of 0.2% to 1.2% copper, 0.2% to 0.6% nickel, and 0.1 to 0.6 ppm combined gold, platinum, and palladium. Zunduisuren stated that the company aims to establish 200,000 to 250,000 tons of in-situ copper resources across the three projects to support multi-year mining operations.
Mongolia is advancing mining sector reforms through its "Vision 2050" plan, including a more transparent licensing system, anti-corruption measures, and digital governance. A new mineral resource tax calculation procedure is expected to reduce operating costs for mining companies. Minister of Industry and Mineral Resources Gongor Damdinnyam noted that under the old system, resource tax rates led to approximately 22.6% higher costs for washed coking coal, 54.3% higher for fluorspar, and 26.6% higher for iron ore. Under the new procedure, if exporters sell at least 25% of their total products through exchanges, the resource tax on the entire volume will be calculated based on exchange prices.
Other ASX-listed companies active in Mongolia's mining hotspots include Resilience Mining Mongolia (ASX:RM1), Xanadu Mines (ASX:XAM), Aspire Mining (ASX:AKM), and Monadelphous Group (ASX:MND). Narantuya Chuluunbat, a professor at the National University of Mongolia, stated that supported by mining strength and supply-driven momentum, Mongolia's economy is expected to grow by 5.6% in 2026.
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